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27 Cards in this Set
- Front
- Back
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NHL DC. List the elements
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Is the instrument negotiable?
Is there a holder in due course? What is D's liability? Is the raised defense cut off? |
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Under what two methods may a transferee sue a transferor of commercial paper?
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1. Obligation as an indorser
OR 2. Transfer warranties |
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Define note
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A note is a document of promise whereby Maker promises to pay Payee a sum of money at a certain time. Credit. Credit Credit.
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What is a certificate of deposit?
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An instrument where bank acknowledges receipt of a sum of money and an obligation to repay that money on a date certain.
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What is a draft?
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A bill where first party orders third party to pay money to second party.
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Elements of a negotiable instrument are:
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Written
Signed Uncon prom or order Pay fixed amt $ w or w/o interest to order or to bearer On demand or at a time No other undertakings or instructions |
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Drawee does or does not have liability to payee or subsequent holder.
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Does not.
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What is another word for accomodation party?
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Surety
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Holder in due course status cannot happen when takes in
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a sale for creditors,
transactions or as successor in interest. |
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How do you become holder of order paper
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Indorsement
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How does one become holder of bearer paper?
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By bearing it.
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How does forgery destroy holder status?
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Depends on notice, whether bearer paper or to order
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Transferee becomes holder when
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Instrument is negotiated
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Order paper with blank indorsement
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Instrument becomes bearer paper
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Difference between presentment and negotiation
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Presentment is the final exchange and negotiaitons are transfers in between banks
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What destroys transferee's status and gives notice of dishonor?
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Notice that there is
claim defense overdue dishonor or c-dod |
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What is notice
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Actual knowledge
Received a notice Reason to know |
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Evidence of forgery or alteration
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Apparent evidence, irregular or incomplete document
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What are the real defenses
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Infancy
Duress Fraud Discharge in BK other discharges |
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Fraud in the inducement is or is not a defense
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Not
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When alteration modifies a party's obligatioon
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If fraudulent, affected party is discharged.
If not fraudulent, then obligation continues |
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Forgery is or is a real defense because
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Only the real signer is really liable
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Is it a defense if someone who cannot trace their title to the obligor tenders a demand?
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Yes, Jus Tertii, but only against non-holders in due course.
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When must presentment for payment be made?
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On a fixed date, OR
After someone becomes liable on an instrument |
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Define transfer warranty
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The warranty given by a transferor
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What are the five warranties of transfer
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Transferor can Enforce
Signatures authorized Instrument is not altered not subject to a defense No knowledge of insolvency |
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Can you enforce a lost instrument? If so, how?
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Yes.
Prove that instrument is lost, (lawfully not seized) cannot be found but had possession b4 |
